HELOC for Down Payment?

[Patrick Hamlin]

Hi all,

Looking into my first rental property (SFH or MFH), but the amount of liquid cash that I have on hand for a down payment is limiting my options. I'm a pretty savvy saver so most of my equity is in numerous investment portfolios, 401K/IRA, or my home. I can sell off some of my portfolio or develop a savings plan for my first property, but thought I would ask my question to this community first.

From my research, a HELOC seems like a viable option to get some cash for a down payment on a rental property. Does anyone have experience doing this? I know everybody's risk tolerance varies, but it seems a little stressful having 2 mortgage payments and a HELOC payment every month. Is it a bad idea?

Any input is appreciated.